Semiconductors: Traders Sell Tuesday's 3-Hour Rally
Wednesday Jul 12 2006 14:59:03 EDT
Ridgeland, MS, JUL 12, 2006 (EventX/Knobias.com via COMTEX) --
Semis (SOX -2.8%) have returned nearly all of Tuesday's 3.3% advance. The catalyst yesterday was a 30% seguential June quarter order increase at KLA-Tencor. This morning the industry turned lower at the outset. Now KLAC sounds like the lone voice in the wilderness. Yesterday's leaders, the semi equipment names, are among the laggards with KLAC, AMKR, LRCX, TER, KLIC & SPIL down more than 4%. The SOX is at a one year low on macro economic concerns. Next week earnings begin in earnest. Tough timing? Smith Barney issued a positive note on FCS, MCHP, ONNN & ISIL, while Thomas Weisel recommended AMAT this morning. All five chip firms are in the red today.(-) Analog chips: Smith Barney issued a positive note on FCS, MCHP, ONNN & ISIL. The firm cited earnings per share growth and positive catalysts. Analog chipmaker NSM jumped 6.3% in Tuesday trading. (-) Capital Equipment: Thomas Weisel reports the SEMICON analyst meetings were a confidence builder for the H2 order outlook. Dow Jones reports that a Bear Stearns analyst said the tone was "cautiously optimistic as expected, but slightly less bullish than a month ago." Next Week's catalysts include earnings from DSPG, LRCX, NVLS, RMBS, SSTI & TER on Wednesday; and CY, FCS, UTEK, AMD, BRCM, PMCS & SWKS on Thursday; and INTC on Friday. |
